How Does Solar PV Work?

Solar panels require light, not heat, so work well in the UK climate, and they still produce energy in cloudy conditions. Solar PV cells turn light from the sun into DC electricity and then an inverter is used to convert this into AC electricity. The electricity is then fed into your home through a meter for you to power your appliances.

The free electricity is automatically used in your property when there is demand for electricity. During periods where the supply from the solar panels exceeds demand, the spare electricity is sold back to the grid. Electricity from the grid will still be used during periods, such as night time, where energy demand exceeds the amount being generated by the solar panels.

By powering your home with free electricity from the solar panels, you should expect to save around 50% on your energy bills.

Solar Panel Installation

An increasing number of UK homeowners and businesses are installing solar panels to significantly reduce energy bills and cash in on the Government’s feed-in tariff.

Whilst the Government’s feed-in tariff has reduced over the last few years, so too has the cost of solar panels. This means solar panels still deliver a healthy return on investment.

Installation of solar panels is relatively quick; most domestic solar installations can be completed in just one day. Once you have decided to install solar panels, you will want to compare quotes from at least two or three MCS accredited installers to ensure you are getting the best deal. To qualify for the feed-in tariff, you must use an MCS accredited installer.

You can join the thousands of homeowners and business who have used The Eco Experts to compare the prices from MCS accredited installers by entering your postcode in the form at the top of this page.

Pros and Cons of Solar

Advantages

Cash in on the Government's feed-in tariffIf you install solar panels using an MCS accredited installer you will be eligible for for the feed-in tariff which pays you up to £8,080 tax free over 20 years for producing renewable energy.

Reduce energy billsInstalling solar panels will also allow you to reduce your energy bills by around 50% as you can use the electricity generated by the solar panels to power your property’s appliances free of charge.

Protect from rising energy billsAs well as reducing your energy bills, solar panels will also protect you from rising energy costs. Over the next 20 years, energy bills are expected to increase significantly so powering your home with free electricity will limit the impact rising energy costs will have on your household’s budget.

Environmentally friendlySolar panels produce renewable energy so will help significantly reduce your environmental impact. By installing solar panels you can reduce your CO2 output by up to 40 tonnes over 25 years.

Disadvantages

High initial costAlthough you can expect a strong return on investment from solar panels, installing them requires a large payment upfront to pay for the solar panels. Solar panels can cost between £2,500 and £9,000.

Requires spaceSolar panels require adequate space on a roof that is shade free. Some properties may not have a big enough roof to install the desired size of solar panel system. That said, most homes in the UK are suitable for solar panels so this shouldn’t be an issue for most.

Types of Solar Panels

The main two types of solar panel are polycrystalline and monocrystalline. However, it’s worth noting that the main factor to consider when choosing your solar panels is power output. The power output of a polycrystalline panel will be virtually identical to a similar sized monocrystalline panel.

Both polycrystalline and monocrystalline panels perform well in the UK climate and will take up a similar sized space on your roof. Therefore you shouldn’t worry whether your panel is polycrystalline or monocrystalline; the main consideration should be power output.

Whilst solar panel design has improved greatly to blend in with the design of roofs, some people opt for solar roof tiles, also known as solar slates, which blend seamlessly with traditional slate.

Feed-in Tariff for Solar Panels

By installing solar panels you could earn up to £8,080 tax free over 20 years through the Government’s feed-in tariff (FiT) scheme.

The feed-in tariff pays you a set rate, currently 4.39p/kWh, for the electricity generated by your solar panels regardless of whether you use the energy to power your property. This is called The Generation Tariff.

Your energy supplier will also pay you a set rate, currently 4.85p/kWh, for all the electricity you produce but do not use. This spare electricity is automatically fed back into the grid so your energy supplier pays you for this too.

Whilst the feed-in tariff has reduced over the last few year, the cost of solar panels has fallen significantly in the same time period, meaning you can still expect a healthy return on investment.

Costs of Installing Solar Panels

As mentioned in the section above, the cost of solar panels has fallen significantly over the last few years. The cost of the solar panels you have installed will depend on their make, quality and size. To compare prices of installers operating in your area, enter your postcode in the box below.

Solar Earnings and Return on Investment

By installing solar panels you will receive regular tax-free cash payments over 20 years from the feed-in tariff. You will also significantly reduce your energy bills by powering your home with free electricity.

The amount you will make depends on the size of solar panel system you have installed. Below is a table showing typical earnings over 20 years for different sized solar panels.

Domestic Solar Panels

Most homes in the UK are suitable for solar panels; around 10 - 12 million homes are classified as ‘very suitable’ yet only around 500,000 have them currently. If you have a South, West, or East facing roof that is angled between 10 and 60 degrees, solar panels are likely to generate a significant amount of electricity.

Most homes don’t need to get planning permission for solar panels unless it’s a listed building or located in a conservation area. It’s always worth checking with your installer if you are unsure.

The Government’s feed-in tariff scheme makes installing solar panels a lucrative investment, with homeowners able to earn up to £8,080 tax free for producing solar power. The average domestic property will require a solar panel sized between 1kW and 4kW, which typically costs between £2,500 and £9,000.

Solar for Businesses

Solar panels can be a wise investment for businesses; they allow them to power their office with free energy, reduce their energy bills, cash in on the Government’s feed-in tariff and show their customers that they are environmentally friendly.

Whilst the feed-in tariff has reduced over the last few years, the cost of solar panels has also reduced. This means businesses can still expect a healthy return on investment by installing solar panels at their premises.

Commercial Solar

Large scale solar projects provide the opportunity to make significant earnings for the owners and power many thousands of homes. Typical commercial solar projects are located in open fields or on top of large buildings, such as warehouses or factories.

Our commercial solar guide provides an in depth look at commercial solar panels and the project management needed for the scheme to be a success.

Additional Information

The Eco Experts will support you throughout your journey with solar panels. Our site has a number of in-depth guides and you can also fill out the form at the top of the page to compare the price of solar panels in your area.

You can also use our solar calculator to discover how much solar panels will earn you over 20 years. If you want to learn more about the price of solar panels, our solar costs page provides an in-depth look at typical solar panel prices.

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*Earnings from solar panels depend on various factors (e.g. the location of the property, the position and slope of the roof, the power system of the solar panels), and therefore they vary. £8,080 would be the total earnings over 25 years, including £4,940 from the government tariff. A figure of £8,080 was obtained using the Energy Saving Trust’s Solar Energy Calculator, and is based on the following criteria; north London postal code, EPC Band D or better, 40̊ roof slope, none or very little shade, south-facing roof, and 4kw power system. After purchase and installation costs of £6,700, the profit would be £1,380. The new Feed-in Tariff is active as of January 15th 2016, and is updated quarterly.

All price information based on feedback from our commercial partners. Energy savings taken from the Solar Trade Association.